BNB (Binance Coin) is the native cryptocurrency of the Binance ecosystem, originally launched as an ERC-20 token on the Ethereum blockchain in 2017. It was later migrated to Binance’s own blockchain, Binance Chain, and is now used primarily to pay for transaction fees on the Binance exchange, offering users a discount when used for this purpose. BNB is also utilized in various other applications within the Binance ecosystem, including Binance Launchpad (for token sales) and Binance Smart Chain (BSC), which facilitates decentralized applications (dApps) and smart contracts.
BNB has multiple use cases, such as staking, governance, and paying for transaction costs on BSC, making it an integral part of the Binance ecosystem. Over time, Binance has implemented a quarterly "burning" mechanism to reduce BNB's total supply, creating deflationary pressure. This, along with its utility across multiple platforms, has contributed to its growing adoption and value within the cryptocurrency market.
